People’s Bank of China (PBoC) plans to test the actual use of digital yuan on the Meituan Dianping food delivery platform. The giant supported by Tencent in its industry, currently has 435 million active users.
CBDC for 435 million users
Meituan Dianping is a food delivery platform based in Beijing, which currently has over 435 million active users and supports transactions worth billions of dollars every day. This creates a huge opportunity for the mass adoption of the digital yuan, which is also called the Digital Currency Electronic Payment or DCEP.
Bloomberg reportedthat Meituan had talks with the Chinese Central Bank department – the Digital Currency Research Institute – about the use of the digital currency of the Central Bank (CBDC). Both parties have yet to specify the details of their partnership.
Apparently, in addition to the food supply company, in talks with the Central Bank, took another company Tencent group – Bilibili. Bilibili is a popular Chinese streaming platform. Recently, one of the largest transport applications, similar to our Uber – DiDi joined the project.
There is no release date yet, but China is making rapid progress
PBoC has already explained that so far, there is no specific date for the launch of the digital yuan, but the Central Bank and its research department are working hard to check its actual use in everyday life.
In April, rumors appeared about launching the portfolio in four Chinese cities – Shenzhen, Chengdu, Suzhou and Xiongan – to pre-test the digital currency.
China’s progress in testing and launching its digital currency only gained momentum during a pandemic. In June, Wang Zhongmin, former Vice-President of the National Council for Social Security Fund in PBoC, announced that China has completed work on CBDC architecture. In March this year, the government also began work on the necessary laws regarding the central currency of the central bank (CBDC).
Earlier this month, Matthew Graham, a veteran from the investment banking market in China and CEO of Sino Global Capital based in Beijing, analyzed what is known so far about the planned digital currency of the Middle Kingdom. He believes the Chinese government sees new technologies as something that will help him break the dollar’s dominance.